Surabaya · East Java · Indonesia

PKPU Composition Plan Surabaya — Drafting & Confirming Restructuring Plans

A PKPU composition plan must translate a debtor's recovery assumptions into terms creditors can evaluate. Before proposing a haircut, instalments, or debt-to-equity conversion, test feasibility, creditor treatment, voting requirements, and implementation risks.

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Dispute resolution and insolvency in East Java.

A plan should begin with a verified creditor schedule, current cash position, operating forecast, asset information, and a realistic account of how the business will fund payments. Creditors need enough detail to compare the proposal with available alternatives, including the risks and likely value of liquidation. Unsupported revenue assumptions or unclear funding sources can undermine confidence.

Possible structures include staged payments, revised maturities, partial compromise, security arrangements, or conversion of debt to equity where legally and commercially workable. Each has different tax, corporate, documentation, and control implications. The plan should state treatment by creditor class, payment mechanics, conditions, reporting, default consequences, and how disputed claims are handled.

When you need this service.

A debtor in PKPU needs to propose a restructuring based on available cash flow and financing.
Creditors need to compare a composition proposal with enforcement or liquidation alternatives.
A plan offers different terms to secured and concurrent creditors or to creditor subgroups.
A lender is asked to accept maturity changes, a discount, new security, or equity conversion.
Parties need to understand voting, court confirmation, and implementation consequences before a creditor meeting.

Dispute resolution and insolvency framework.

Law No. 37 of 2004 governs PKPU and composition proceedings. The proposal, creditor meeting, voting process, and court confirmation are subject to statutory requirements and directions in the case. Voting thresholds and the treatment of each creditor category are technical; the debtor and creditors should have counsel verify the applicable calculation against admitted claims and the current statutory text.

Court confirmation, known as homologation, is not merely a private promise: it follows the statutory process and can affect parties bound by the confirmed composition. The consequences of rejection, failure to obtain confirmation, or later default depend on the stage and legal facts. The plan should not state that rejection invariably produces one result without checking the proceeding and applicable provisions.

Legal References

Law No. 37 of 2004 on Bankruptcy and PKPU

How we handle disputes and insolvency.

We test the proposal against claim verification, cash-flow capacity, asset and funding evidence, and the interests of different creditor groups. We identify assumptions that need support and model alternative structures without treating projections as assured results.

We help draft clear terms, prepare supporting materials for creditor consideration, and assess voting and confirmation issues with counsel. For creditors, we examine feasibility, legal effect, security, and monitoring or default protections before advising on a response.

Our Services

Feasibility and cash-flow review

Assess payment assumptions, funding sources, forecast sensitivity, and operational requirements.

Creditor treatment analysis

Map proposed terms against claim classifications, security, voting, and implementation effects.

Composition plan drafting

Develop clear payment mechanics, conditions, reporting duties, and consequences of non-performance.

Creditor review and response

Evaluate a proposal's evidence, legal terms, alternatives, and questions for the meeting.

Frequently Asked Questions

What should a PKPU composition proposal contain?

A useful proposal explains the debtor's financial position, creditor schedule, payment source and timing, treatment of creditor groups, conditions, reporting, and consequences of default. Supporting forecasts and asset information should make key assumptions testable.

How is a composition plan approved?

Approval involves statutory voting rules at the creditor meeting and court confirmation. The required thresholds and calculation depend on the claim categories, admitted amounts, creditors participating, and applicable provisions. Counsel should verify the calculation for the actual case.

What happens if creditors reject the proposal?

The consequences depend on the procedural stage and governing provisions, and may include movement toward bankruptcy proceedings. Do not treat rejection as a simple automatic outcome without reviewing the case record and current law.

Can creditors receive different restructuring terms?

Different terms may raise issues about creditor classification, equal treatment, security, and statutory voting. The rationale and legal basis should be clear, and counsel should test the structure against the creditor list and applicable rules.

What should a creditor check before voting?

Review the verified claim, payment capacity, funding evidence, collateral and priority, assumptions, default protections, and the likely alternative if the plan fails. Ask how disputed claims and monitoring will be handled, and document the basis for the voting decision.

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Describe your legal needs. A senior partner will respond within one business day.

info@integralaw.id

Jl. Juwono No.7-8, Darmo, Kec. Wonokromo, Surabaya